Bill Text: OR HB3317 | 2013 | Regular Session | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to emergency communications taxes; prescribing an effective date; and providing for revenue raising that requires approval by a three-fifths majority.

Spectrum: Moderate Partisan Bill (Democrat 22-7)

Status: (Passed) 2013-08-26 - Chapter 749, (2013 Laws): Effective date October 7, 2013. [HB3317 Detail]

Download: Oregon-2013-HB3317-Engrossed.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1093

                           A-Engrossed

                         House Bill 3317
                  Ordered by the House April 5
            Including House Amendments dated April 5

Sponsored by Representative READ; Representatives BAILEY, BARKER,
  BOONE, BUCKLEY, DOHERTY, FREDERICK, GALLEGOS, GELSER, GOMBERG,
  GORSEK, GREENLICK, HOLVEY, HOYLE, HUFFMAN, JENSON, KENY-GUYER,
  KOMP, KRIEGER, LIVELY, MATTHEWS, NATHANSON, PARRISH, VEGA
  PEDERSON, WEIDNER, WILLIAMSON, WITT, Senators STARR, THOMSEN
  (at the request of Oregon Chapters of Association of Public
  Safety Communications Officials/National Emergency Number
  Association (APCO/NENA), Association of Oregon Counties (AOC),
  League of Oregon Cities (LOC), Special Districts Association of
  Oregon (SDAO), Oregon State Firefighters Council (OSFFC),
  Oregon Fire District Directors Association (OFDDA), Oregon Fire
  Chiefs Association (OFCA), Oregon Volunteer Firefighters
  Association (OVFA), Oregon State Sheriffs Association (OSSA),
  Oregon Association Chiefs of Police (OACP), American Federation
  of State, County and Municipal Employees (AFSCME))

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.

  Extends period of applicability of emergency communications
tax.  { + For purposes of collection of tax, requires Department
of Revenue to undertake enhanced enforcement and collection
activities, with emphasis on collection by providers of tax owed
on prepaid and Voice over Internet Protocol services. Directs
department to report to Legislative Assembly regarding enhanced
enforcement and collection activities.
  Increases percentage of revenues from tax paid to department
for administrative costs. Applies to calendar quarters ending on
or after effective date of Act.
  Takes effect on 91st day following adjournment sine die. + }

                        A BILL FOR AN ACT
Relating to emergency communications taxes; creating new
  provisions; amending ORS 403.240 and section 4, chapter 5,
  Oregon Laws 2002 (first special session); prescribing an
  effective date; and providing for revenue raising that requires
  approval by a three-fifths majority.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. Section 4, chapter 5, Oregon Laws 2002 (first
special session), as amended by section 1, chapter 4, Oregon Laws
2002 (third special session), and section 1, chapter 629, Oregon
Laws 2007, is amended to read:

   { +  Sec. 4. + } (1) Taxes imposed under ORS   { - 401.792 - }
 { + 403.200 + } apply to subscriber bills issued on or after
January 1, 2002, and before January 1,   { - 2014 - }  { +
2022 + }.
  (2) Taxes imposed under ORS   { - 401.792 - }   { + 403.200 + }
on or after January 1, 2002, and before May 13, 2002, are due and
payable by the subscriber to the provider on or before 20 days
after the first day of the month following May 13, 2002. Taxes
that are not paid by the subscriber to the provider within the
time required shall bear interest at the rate established under
ORS 305.220 for each month, or fraction of a month, from the date
that is 20 days after the first day of the month following May
13, 2002, until paid.
  (3) Unless previously remitted, taxes that are paid to the
provider under subsection (2) of this section shall be remitted
by the provider to the Department of Revenue at the time and in
the same manner as taxes imposed under ORS   { - 401.792 - }
 { + 403.200 + } for the first month following May 13, 2002, are
remitted to the department.
  SECTION 2.  { + Sections 3 and 4 of this 2013 Act are added to
and made a part of ORS 403.200 to 403.230. + }
  SECTION 3.  { + (1) As used in this section, 'fixed
interconnected Voice over Internet Protocol service' means a
telecommunications service that utilizes an Internet protocol to
enable a customer to participate in real-time two-way voice
communication.
  (2) For taxes imposed under ORS 403.200 that are due on or
after the effective date of this 2013 Act, the Department of
Revenue, in its administration of the provisions of ORS 403.200
to 403.230, shall undertake enhanced enforcement and collection
activities intended to achieve greater compliance with the tax
imposed under ORS 403.200, and shall emphasize collection of the
tax by providers required to collect tax imposed on prepaid
services, and providers required to collect tax imposed on fixed
interconnected Voice over Internet Protocol service. + }
  SECTION 4.  { + (1) Beginning on or before February 15, 2014,
the Department of Revenue shall report on a quarterly basis to a
committee of the Legislative Assembly related to revenue
regarding the implementation of the enhanced enforcement and
collection efforts required under section 3 of this 2013 Act.
  (2) Beginning on or before February 15, 2015, the department
shall include in the quarterly report required under subsection
(1) of this section information that details categories of
providers that are deficient in collecting the tax imposed under
ORS 403.200. + }
  SECTION 5.  { + Section 4 of this 2013 Act is repealed on the
date of the convening of the 2017 regular session of the
Legislative Assembly as specified in ORS 171.010. + }
  SECTION 6. ORS 403.240, as amended by section 1, chapter 60,
Oregon Laws 2012, is amended to read:
  403.240. (1) The Office of Emergency Management shall
distribute quarterly the entire amount of the moneys in the
Emergency Communications Account. The office shall pay the
following amounts from the account:
  (a) Administrative costs incurred during the preceding calendar
quarter by the Department of Revenue in carrying out ORS 403.200
to 403.230 in an amount that does not exceed   { - one-half - }
 { +  three-quarters + } of one percent of the amount in the
account on the date of distribution, or actual expenses incurred
by the department, whichever is less.
  (b) Administrative costs to be incurred during the calendar
quarter by the Office of Emergency Management in carrying out its
duties under ORS 305.823 and 403.105 to 403.250. The amount to be
paid under this paragraph may not exceed four percent of the
amount in the account on the date of distribution, and, on or
before the next date of distribution, the office shall repay to
the account any amount received under this paragraph that exceeds
the actual expenses incurred by the office in the quarter.
  (2) The office may:
  (a) Provide funding for the Oregon Emergency Response System in
an amount that does not exceed 15 percent of the legislatively
approved budget for the Oregon Emergency Response System subject
to availability of funds within the limit for administrative
costs in subsection (1)(b) of this section.
  (b) Prescribe the manner in which funding is provided to the
Oregon Emergency Response System under this subsection.
  (3) The office shall use funds in the Enhanced 9-1-1 Subaccount
to pay for costs incurred during the preceding calendar quarter
for enhanced 9-1-1 telephone service established pursuant to ORS
403.115. The office may not disburse funds in the Enhanced 9-1-1
Subaccount to a 9-1-1 jurisdiction that does not have an approved
final plan as required in section 7, chapter 743, Oregon Laws
1991. The office shall make payments for reimbursement only after
a reimbursement request has been submitted to the office in the
manner prescribed by the office. Reimbursement requests for
recurring and nonrecurring charges necessary to enable the 9-1-1
jurisdiction to comply with ORS 403.115 must be submitted
directly to the office. The costs reimbursable under this
subsection are only those incurred for:
  (a) Modification of central office switching and trunking
equipment;
  (b) Network development, operation and maintenance;
  (c) Database development, operation and maintenance;
  (d) On-premises equipment procurement, maintenance and
replacement;
  (e) Conversion of pay station telephones required by ORS
403.140;
  (f) Collection of the tax imposed by ORS 403.200 to 403.230;
and
  (g) Addressing if the reimbursement request is consistent with
rules adopted by the office.
  (4) Subject to availability of funds, the office shall provide
funding to 9-1-1 jurisdictions that have enhanced 9-1-1 telephone
service operational prior to December 31, 1991, based on cost
information provided in their final plan required in section 7,
chapter 743, Oregon Laws 1991. The office shall approve final
plans submitted that meet the minimum requirements set forth in
ORS 403.115 (2) and (4). The office shall limit funding for costs
incurred prior to the preceding calendar quarter to charges
associated with database development, network and on-premises
equipment that satisfies the requirements of ORS 403.115 (2) and
(4). The office shall prescribe the manner in which funding is
provided under this subsection.
  (5) 9-1-1 jurisdictions may use funds distributed to the
jurisdiction from any account described in ORS 403.235 to repay
loans from the Special Public Works Fund if the loans were used
for purposes that are allowable under ORS 403.105 to 403.250.
  (6) The office shall retain amounts remaining in the Enhanced
9-1-1 Subaccount and may distribute the amounts in a subsequent
quarter for those purposes set forth in subsections (3), (4) and
(5) of this section.
  (7) The office shall review reimbursement requests for
modification of central office switching and trunking equipment,
conversion of pay station telephones, and network development,
operation and maintenance costs necessary to comply with ORS
403.115 for the appropriateness of the costs claimed. The office
shall approve or disapprove the reimbursement requests.
  (8) The office shall review reimbursement requests for database
development, operation and maintenance, and on-premises equipment
procurement, maintenance and replacement costs necessary to
comply with ORS 403.115 for the appropriateness of the costs
claimed.
  (9) After all amounts under subsections (1) and (2) of this
section and ORS 403.235 (2) have been paid, the office shall
allocate the balance of the Emergency Communications Account to
cities on a per capita basis and to counties on a per capita
basis of each county's unincorporated area for distribution
directly to 9-1-1 jurisdictions as directed by the city or
county. However, each county must be credited a minimum of one
percent of the balance of the account after the amounts under
subsections (1) and (2) of this section and ORS 403.235 (2) have
been paid.
  (10) 9-1-1 jurisdictions shall submit an accounting report to
the office annually. The report must be provided in the manner
prescribed by the office and must include but not be limited to:
  (a) Funds received and expended under subsection (9) of this
section for the purposes of fulfilling the requirements of ORS
403.115;
  (b) Local funds received and expended for the purposes of
fulfilling the requirements of ORS 403.115; and
  (c) Local funds received and expended for the purposes of
providing emergency communications services.
  SECTION 7.  { + The amendments to ORS 403.240 by section 6 of
this 2013 Act apply to calendar quarters ending on or after the
effective date of this 2013 Act. + }
  SECTION 8.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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